Lappen Sues WFA for Breach of Contract

World Fighting Alliance CEO Jeremy Lappen has sued the Nevada-based
fight company and its owners, Ross Goodman and Luis Pallazo, for
breach of written contract and is seeking damages to the tune of
nearly $133,000, according to a civil complaint obtained by
Sherdog.com that was filed on behalf of Lappen in a Los Angeles
County Superior Court on Nov. 15.

The suit alleges Lappen’s salary — $250,000 per year — has gone
unpaid since June 15, 2006, a full five weeks before the WFA was
set to return with a card in Los Angeles headlined by Quinton Jackson(Pictures) and Matt Lindland(Pictures).

Lappen is asking for back wages of just under $99,000 and expenses
totaling roughly $33,000.

Attempts to reach Lappen went unreturned.

Jay Tan, assistant to Lappen in the WFA Los Angeles office and head
of talent development, told Sherdog.com he was surprised by the
suit, which became public Wednesday evening on MMAweekly Radio. Tan
declined any further comment.

Lappen went to work for the WFA beginning in late February 2006,
taking the title of CEO. According to the complaint, Lappen
fulfilled his duties and was paid for several months based on the
terms of the contract.

However, by the middle of June 2006, around the time Lappen alleges
he stopped receiving compensation for his work, the WFA was already
suffering from “financial difficulties,” according to the
document.

Appearing as an exhibit along with the complaint is a letter signed
by Goodman and Pallazo that appears to guarantee Lappen’s pay for a
minimum of two years. The same letter also promised at least three
live WFA events in the company’s first 12 months.

The first pay-per-view event came in July, however follow-up cards
have since been postponed twice, first in October and again early
December.

“We’re very disappointed in the rumors we’re hearing that they’re
not going to have a second one,” he continued. “I believe my guys
are very marketable and they welcome the opportunity, if it were to
present itself, to be free agents. Competition is good for the
sport, and it’s unfortunate if the rumors are true and the WFA is
not going to be competition.”

Pavia told Sherdog.com that McCullough, Alex Stiebling(Pictures) and Zach Light were scheduled to appear
on the WFA’s Dec. 9 effort. When asked if he’d attempt to determine
whether agreements between WFA and his fighters were still binding,
Pavia said it was something he planned on immediately
exploring.

Pallazo and Goodman, both attorneys based in Las Vegas, could not
be reached for this story. The pair took over as majority
shareholders from previous WFA owners John Lewis(Pictures) and John Huntington, and in late
2005, the complaint asserts, Lappen was asked to join the WFA as an
employee. By Feb. 28, 2006, Lappen had entered into agreement with
Pallazo and Goodman to become CEO of the WFA.

From the time the complaint alleges Lappen received his last
payment up until Nov. 6, the former CEO is said to have made
repeated requests to be paid. “Lappen received constant assurances
from Palazzo, Goodman, and the WFA that Lappen would be paid soon,”
it says in the suit.